There are many common questions that arise throughout the 1031 exchange process. One area many people have questions about is geography as it relates to their exchange. In this article, we are going to talk about where your 1031 exchange should take place.
Property Location
All property exchanged in a 1031 transaction must be like-kind. Thankfully, the definition of like-kind in this context is quite broad. Most investment real estate is like-kind with most other investment real estate. The geographic location of your property (so long as it’s in the United States) doesn’t matter too much. You can conduct an exchange across different states. For example, you can sell a relinquished property in Wisconsin and purchase a like-kind replacement property in North Dakota.
Qualified Intermediary Location
On a similar note, the qualified intermediary you work with on your exchange does not need to be located in the same area as you or your property. You can hire a qualified intermediary in Minnesota to facilitate an exchange of properties located in Florida, for example. It’s important, however, to make sure your intermediary is familiar with the local customs where your transaction is taking place.
Find a Qualified Intermediary Near You
The first step in any 1031 exchange is to find a qualified intermediary who can help you through the ins and outs of the exchange process and insulate you from receiving any taxable boot. CPEC1031, LLC stands ready and waiting to assist you through the details of your like-kind exchange. Let us put our 20+ years of experience to work on your exchange and help you defer your capital gains tax burden on the sale of qualifying investment real estate.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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